Forex: USD/CHF Technical Analysis – Candles Hint at Rebound
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- USD/CHF Technical Strategy: Flat
- Support: 0.8776-50 (Feb 28 low, 38.2% Fib exp.), 0.8705 (50% Fib exp.)
- Resistance: 0.8855 (trend line)
US Dollar indecision may turn into an upward reversal against the Swiss Franc after prices showed back-to-back Doji candlesticks above support in the 0.8750-76 area, marked by the 38.2% Fibonacci expansion and the February 28 low. Positive RSI reinforces the probability of a turn higher. Near-term resistance is at trend line set from late January, now at 0.8847. Alternatively, a reversal below 0.8750 aims for the 50% Fib at 0.8705.
Doji candlesticks signal indecision and are not sufficient by themselves to signal a reversal without confirmation. We will continue to stand aside for now, waiting for a break of trend line resistance to look for buying opportunities.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.